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Q4 and Full-Year 2016 Conference Call

January 26, 2017

CHANGING THE COURSE OFHUMAN HEALTH THROUGH BOLD

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Q4 and Full-Year 2016 Conference CallQ4 and Full-Year 2016 Conference Call

Mark Alles, Chief Executive Officer

Scott Smith, President, Global I&I

Jackie Fouse, President & Chief Operating Officer

Q&A

Michael Pehl, President, Hematology & Oncology

Peter Kellogg, Chief Financial Officer

2

Forward Looking Statements and Adjusted Financial InformationForward Looking Statements and Adjusted Financial Information

3

This presentation contains forward-looking statements, which are generally statements that are not historical facts.Forward-looking statements can be identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates,”“plans,” “will,” “outlook,” “targets” and similar expressions. Forward-looking statements are based on management’scurrent plans, estimates, assumptions and projections, and speak only as of the date they are made. We undertake noobligation to update any forward-looking statement in light of new information or future events, except as otherwiserequired by law. Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predictand are generally beyond our control. Actual results or outcomes may differ materially from those implied by the forward-looking statements as a result of the impact of a number of factors, many of which are discussed in more detail in ourAnnual Report on Form 10-K and our other reports filed with the Securities and Exchange Commission.

In addition to unaudited financial information prepared in accordance with U.S. GAAP, this presentation also containsadjusted financial measures. Further information relevant to the interpretation of adjusted financial measures, andreconciliations of these adjusted financial measures to the most comparable GAAP measures, may be found in theAppendix and on our website at www.Celgene.com in the “Investor Relations” section.

Mark AllesChief Executive Officer


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Significant Momentum Heading Into Pivotal Inflection PeriodSignificant Momentum Heading Into Pivotal Inflection Period

Strengthening Value Proposition of Our Commercial Portfolio − Blockbuster products with anchor positions for unmet medical needs− More than 500,000 patients treated in 2016 with our approved commercial therapies

Accelerating the Development of Transformational Products− Dynamic 2 year period; 19 Ph III readouts expected; 9 new molecules advancing to pivotal trials − Advancing 14 new molecules with the potential to be approved over the next 5 years

Enhancing Capabilities and Adding to Our Pipeline− 8 INDs/CTAs filed with first- and best-in-class potential − Key recent business development transactions: EngMab, Evotec, Anokion, Delinia

5

Peter KelloggChief Financial Officer


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Full-Year 2016 Financial HighlightsFull-Year 2016 Financial Highlights

Outstanding Operating Results− 2016 year-over-year net product sales grew 22% and adjusted diluted EPS grew 26%− Adjusted operating margins improved by 300 bps

Excellent Performance on Operating Metrics− Strong product growth across both franchises− 4 blockbuster products – REVLIMID®, POMALYST®, OTEZLA®, ABRAXANE®

Balanced Capital Deployment− Invested $1.7B in acquisitions and new collaborations− $2.2B in shares repurchased in 2016

2017: An Inflection Point for Future Growth− 2017 guidance reflects strong operating momentum− Data from multiple Ph III and proof-of-concept trials expected in 2017-2018

7

Q4 2016 Total Net Product SalesQ4 2016 Total Net Product Sales

Q4:14 Q4:15 Q4:16

$2,055

$2,539

$2,977

$ M

illio

ns ↑19% ↑24% ↑17%

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Q4:15 Volume Price Fx /Hedge

Q4:16

↑17.2%↓0.3%↑13.9% ↑3.6%

Contribution to Q4:16 Total Net Product Sales Growth

$ M

illio

ns

Total Net Product Sales

Footnote: Growth Rates = Growth vs. Prior Year Period 8

Full-Year 2016 Total Net Product SalesFull-Year 2016 Total Net Product Sales

2014 2015 2016

$7,564

$9,161

$11,185

$ M

illio

ns ↑19% ↑21% ↑22%

$0

$2,000

$4,000

$6,000

$8,000

$10,000

2015 Volume Price Fx /Hedge

2016

↑22.1%↓0.8%↑18.4% ↑4.5%

Contribution to 2016 Total Net Product Sales Growth

$ M

illio

ns

Total Net Product Sales

9Footnote: Growth Rates = Growth vs. Prior Year Period

Q4 2016 Adjusted Diluted Earnings Per ShareQ4 2016 Adjusted Diluted Earnings Per Share

$1.01

$1.18

$1.61

Q4:14 Q4:15 Q4:16

↑33% ↑17%

Dol

lars

Per

Sha

re

↑36%

Q4:15 Oper. Income

OIE Tax Rate

Share Count

Q4:16

Dol

lars

Per

Sha

re

$1.61$0.40$1.18 $0.01 $0.03($0.01)

10

Contribution to Q4:16 Adjusted Diluted EPSAdjusted Diluted EPS

Footnote: Growth Rates = Growth vs. Prior Year Period

Full-Year 2016 Adjusted Diluted Earnings Per ShareFull-Year 2016 Adjusted Diluted Earnings Per Share

$3.71

$4.71

$5.94

2014 2015 2016

↑24% ↑27%

Dol

lars

Per

Sha

re

↑26%

$0

$1

$2

$3

$4

$5

$6

2015 Oper. Income

OIE Tax Rate

Share Count

2016

Dol

lars

Per

Sha

re

$5.94$1.41$4.71 ($0.06) $0.16($0.28)

11

Contribution to 2016 Adjusted Diluted EPSAdjusted Diluted EPS

Footnote: Growth Rates = Growth vs. Prior Year Period

Key P&L Line Items (Adjusted)Key P&L Line Items (Adjusted)

Q4:16 ∆ vs.Q4:15 2016 ∆ vs.

2015

Product Gross Margin 96.4% ↑20 bps 96.4% ↑60 bps

R&D expenses% of revenue

$673M22.6% ↓270 bps $2,508M

22.3% ↑20 bps

SG&A expenses% of revenue

$534M17.9% ↓290 bps $2,139M

19.0% ↓270 bps

Operating Margin 56.0% ↑590 bps 55.0% ↑300 bps

Effective Tax Rate 14.5% ↓40 bps 15.7% ↑50 bps

12

Cash and Marketable SecuritiesCash and Marketable Securities

Cash flow from operations was approximately $3,976M during 2016

Invested $1.7B in acquisitions and new collaborations in 2016

In 2016, purchased $2.16B of shares– $4.73B remaining under existing stock repurchase program

(in Billions) 12/31/16 12/31/15

Cash and Marketable Securities $7.97 $6.55

13

Full-Year 2017 Financial OutlookFull-Year 2017 Financial Outlook

2017 Guidance ∆ vs.2016

Total Revenue $13.0B-$13.4B ↑ 18%1

REVLIMID® Net Sales $8.0B-$8.3B ↑ 17%1

POMALYST®/IMNOVID® Net Sales ~$1.6B ↑ ~22%

OTEZLA® Net Sales $1.5B-$1.7B ↑ 57%1

ABRAXANE® Net Sales ~$1.0B ↑ ~3%

Adjusted Diluted EPS $7.10-$7.25 ↑ ~21%1

Adjusted Operating Margin ~56.5% ↑ ~150 bps

Weighted Average Diluted Shares ~815M ↑ ~12M2

1. Using mid-point of the range2. Reflects accounting standard change effective 1/1/2017 which eliminates a favorable adjustment currently provided in diluted share count under existing

accounting guidance14

Michael PehlPresident, Hematology & Oncology


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Q4 2016 and 2016 Hematology & Oncology Franchise ResultsQ4 2016 and 2016 Hematology & Oncology Franchise Results

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Strong Net Product Sales and Operating Momentum into 2017− Q4:16 net sales growth of +13% Y/Y; 2016 +17%− Sales performance driven by strong demand across brands and geographies− POMALYST®/IMNOVID® blockbuster status achieved with 2016 sales of over $1B

2017 Growth Drivers On-Track− Ongoing REVLIMID® NDMM non-SCT launch and increasing use of triplets driving share

and duration around the globe− Significant opportunity from expected regulatory decision for the use of REVLIMID® as

maintenance therapy post-ASCT− Expected U.S. regulatory decision for daratumumab in combination with POMALYST®

− Expected U.S. regulatory decision for enasidenib in IDH2 mutant rrAML− Ph III data on REVLIMID® in indolent lymphoma and ABRAXANE® in adjuvant PanC

Advancement of Transformational Pipeline− 11 pivotal programs with in-line brands and new assets− Data for CC-122, CC-486, durvalumab, marizomib and demcizumab expected in 2017− Opportunity to initiate more than 10 additional pivotal programs with later-stage pipeline

Current Results & Potential Future Growth Drivers

Q4:16 and 2016 REVLIMID® Sales Summary Q4:16 and 2016 REVLIMID® Sales Summary

• Q4:16 sales $1,808M; +16% Y/Y, -4% Q/Q• 2016 sales $6.97B; +20% Y/Y• Ongoing NDMM highly successful launch

– REVLIMID® NDMM NSCT reimbursed in 20 countries– Reimbursement for NDMM NSCT in France expected in Q1:17

• 2017 growth drivers U.S. regulatory decision for maintenance post-ASCT expected in

Q1:17; EU regulatory decision expected in H1:17 Strong momentum for increased duration of treatment and

adoption of continuous treatment around the world

• Potential future growth drivers advancing– Ph III RELEVANCE and AUGMENT® data expected by YE:17– Regulatory submission for RVd in 1st line transplant and non-

transplant candidates planned– Complete enrollment in Ph III ROBUST® trial with REVLIMID® in

1st line DLBCL with ABC-subtype

$997 $1,080 $1,153 $1,187

$577 $621

$738 $621

Q1:16 Q2:16 Q3:16 Q4:16

US ROW

$1,574$1,701

$1,891 $1,808

17

Sales ($M)


Q4:16 and 2016 POMALYST®/IMNOVID® Sales SummaryQ4:16 and 2016 POMALYST®/IMNOVID® Sales Summary

$171 $185 $203 $219

$103 $133

$138 $159

Q1:16 Q2:16 Q3:16 Q4:16

US ROW

$274

$318$341

$378

• Q4:16 sales $378M; +29% Y/Y, +11% Q/Q

• 2016 sales $1,311M; +33% Y/Y

• Successful global launch of POMALYST®/IMNOVID® continues – Global demand continues to grow from market share and duration– U.S. POMALYST® leading 3rd line+ share– EU IMNOVID® leading market share in 4th line+– POMALYST® has leading market share in 3rd line+ in Japan

• 2017 growth drivers Duration and market share trends increasing FDA regulatory decision for daratumumab/POMALYST®

expected in Q2:17• Potential future growth drivers

POMALYST®/IMNOVID® combinations with other novel agents advancing

Complete enrollment in Ph III OPTIMISMM® trial with POMALYST® in 2nd line+ MM

Sales ($M)

18

Q4:16 and 2016 ABRAXANE® Sales SummaryQ4:16 and 2016 ABRAXANE® Sales Summary

$144 $175

$144 $171

$81

$74 $89

$95

Q1:16 Q2:16 Q3:16 Q4:16

US ROW

$225$249

$233

$266

Sales ($M)

19


• Q4:16 sales $266M; -1% Y/Y, +14% Q/Q• 2016 sales $973M; +1% Y/Y• 2017 growth drivers

Maintain leadership in first-line metastatic pancreatic cancer in U.S.

Continue uptake in metastatic pancreatic cancer and metastatic breast cancer in EU

• Potential future growth driversPh III apact® data for ABRAXANE® in adjuvant

PanC by YE:17Advancing I/O strategy in NSCLC, TNBCOngoing trials in support of potential label

expansions in PanC, lung and breast cancer

Advancing a Transformative Hematology & Oncology PipelineAdvancing a Transformative Hematology & Oncology Pipeline

Celgene has an exclusive option to license Demcizumab, JTX-2011, LYC-55716, LYC-30937, OMP-131R10, OMP-305B83, and TIGIT

REVLIMID®

Del 5q MDS

VIDAZA®

MDS, AML

EnasidenibIDH2 AML

LuspaterceptMDS, Beta-thalassemia

CC-486 MDS, AML

DurvalumabMDS, AML

CC-90002AML

CC-90009AML

PNK-007AML

MyeloidDisease

9

MarizomibGBM

DemcizumabPanC, NSCLC

CC-486NSCLC, mBC

CC-122HCC

CC-90002Solid TumorsCC-90011

Solid Tumors

ABRAXANE®

PanC, NSCLC, mBC

AG-881Glioma

SolidTumors

13

TIGITSolid Tumors

OMP-305B83Solid Tumors

OMP-131R10Solid Tumors

LYC-55716Solid Tumors

JTX-2011Solid Tumors

MarketPh I

L E G E N D

REVLIMID®

MCL

ISTODAX®

PTCL, CTCL

REVLIMID®

NHLCC-122NHL, CLL

JCAR017NHL

DurvalumabNHL, CLL

CC-486NHL

Lymphoma& Leukemia

7

REVLIMID®

NDMM, RRMM

POMALYST®

RRMM

THALOMID®

NDMM, RRMM

CC-122RRMM

CC-220RRMM Durvalumab

NDMM, RRMM

bb2121RRMM

PNK-007RRMM

MarizomibRRMM

ACY-241RRMM

CC-486RRMM

MultipleMyeloma

11

20

MarketPh I

L E G E N D

REVLIMID®

NDMM, RRMM

POMALYST®

RRMM

THALOMID®

NDMM, RRMM

CC-122RRMM

CC-220RRMM Durvalumab

NDMM, RRMM

bb2121RRMM

PNK-007RRMM

MarizomibRRMM

ACY-241RRMM

CC-486RRMM

MultipleMyeloma

11


21

bb2121Targeting pivotal program initiation in RRMM in 2017

durvalumabBroad Ph I/III FUSIONTM program in MDS, AML, NHL, CLL and MM underway; Ph III enabling data expected in 2017

MarketPh I

L E G E N D Data on CC-122 and CC-220 expected in 2017; INDs for EM901 and CC-95821 by YE:17

New Assets

MarketPh I

L E G E N D

REVLIMID®

MCL

ISTODAX®

PTCL, CTCL

REVLIMID®

NHLCC-122NHL, CLL

JCAR017NHL

DurvalumabNHL, CLL

CC-486NHL

Lymphoma& Leukemia

7


22

REVLIMID® Ph III RELEVANCE and AUGMENT® data expected by YE:17

CC-122Ph I/II trials underway: NHL, CLL and MM; Pivotal program initiation expected in 2017

MarketPh I

L E G E N D Initiate pivotal program in 2017; Breakthrough and PRIME designation grantedJCAR017


REVLIMID®

Del 5q MDS

VIDAZA®

MDS, AML

EnasidenibIDH2 AML

LuspaterceptMDS, Beta-thalassemia

CC-486 MDS, AML

DurvalumabMDS, AML

CC-90002AML

CC-90009AML

PNK-007AML

MyeloidDisease

9

MarketPh I

L E G E N D

23

Enasidenib U.S. regulatory decision for IDH2 mutant rrAML expected in H2:17

LuspaterceptPh III trials in RS+ MDS and beta-thalassemia underway; Trials in broader segments and myelofibrosis expected to begin in 2017

CC-486Ph III trials MDS and AML enrolling; AML trial expected to complete enrollment in 2017; Additional pivotal opportunities in MDS and AMLMarketPh I

L E G E N D


Celgene has an exclusive option to license Demcizumab, JTX-2011, LYC-55716, LYC-30937, OMP-131R10, OMP-305B83, and TIGIT

MarizomibGBM

DemcizumabPanC, NSCLC

CC-486NSCLC, mBC

CC-122HCC

CC-90002Solid TumorsCC-90011

Solid Tumors

ABRAXANE®

PanC, NSCLC, mBC

AG-881Glioma

SolidTumors

13

TIGITSolid Tumors

OMP-305B83Solid Tumors

OMP-131R10Solid Tumors

LYC-55716Solid Tumors

JTX-2011Solid Tumors

24

ABRAXANE® Ph III apact® data for ABRAXANE® in adjuvant PanC by YE:17

Marizomib Targeting pivotal program initiation in GBM in 2017

MarketPh I

L E G E N D Demcizumab Ph II PanC combo trial with ABRAXANE®

underway; Data expected in H1:17

2017 Hematology and Oncology Franchise Outlook2017 Hematology and Oncology Franchise Outlook

25

Strong Results from Key Products Expected in 2017− 2017 REVLIMID® net product sales guidance of $8B-$8.3B− 2017 POMALYST®/IMNOVID® net product sales guidance of ~$1.6B− 2017 ABRAXANE® net product sales guidance of ~$1B

Regulatory Catalysts to Expand Portfolio− U.S. regulatory decision for use of REVLIMID® as maintenance therapy post-ASCT

expected in Q1:17; EU regulatory decision in H1:17− U.S. regulatory decision for enasidenib in IDH2 mutant rrAML expected in H2:17− Plan to submit RVd in NDMM by YE:17

Significant Progress in Developing Mid- and Late-Stage Pipeline− Significant additional lifecycle opportunities for luspatercept, CC-486 and enasidenib− Potential to advance marizomib, bb2121, JCAR017, CC-122, durvalumab and

demcizumab into pivotal studies

Scott SmithPresident, Global I&I


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Q4 2016 and Full-Year 2016 I&I Franchise ResultsQ4 2016 and Full-Year 2016 I&I Franchise Results

Accelerating Sales Performance and Momentum for OTEZLA®

– Achieved blockbuster status; Exceeding $1B in sales in second full year on market– Revenue continued to accelerate through Q4:16– Strengthening position in PSOR & PsA; Market share & persistency continue to improve– Expanding U.S. biologic-step-free access position

Expanded OTEZLA® Global Footprint– Approved in Japan ahead of schedule– Preparing for launch in several major European markets and Japan– Advancing regulatory submissions in Eastern Europe, Asia and Latin America

Advancing Development of I&I Pipeline– Ozanimod Ph III program in MS fully enrolled; U.S. pre-registration activities ongoing– Executing pivotal programs for ozanimod in UC, and GED-0301 in Crohn’s disease– CC-220 Ph IIa results support advancement into randomized Ph IIb for SLE

27

• Q4:16 sales $305M, +67% Y/Y, +11% Q/Q• 2016 sales $1,017M, +116% Y/Y• Continued growth of OTEZLA® as adoption

and treatment duration continue to improve

• Preparing for full international launch in 2017, including key EU markets

• Development of new indications to expand OTEZLA® clinical profile

OTEZLA®: A Blockbuster for Immune-Inflammatory DiseasesOTEZLA®: A Blockbuster for Immune-Inflammatory Diseases


$175$217

$245 $268

$21

$25$30

$37

Q1:16 Q2:16 Q3:16 Q4:16US ROW

$196

$242$275

$305

Net Sales ($M)

28

OTEZLA® Competing for Market Leadership PositionOTEZLA® Competing for Market Leadership Position

• Directly connecting with plaque psoriasis patients through DTC advertising

• Growing prescriber base (trialists, brand awareness)

• Gains in persistence and compliance

• Expanded U.S. access footprint to cover an additional 70-100 million commercial patient lives0%

5%

10%

15%

20%

25%

30%

35%

40%

ENBREL

STELARA

HUMIRA

COSENTYX

OTEZLA

Note: Symphony data is subject to restatement Source: Symphony Prescriber-level data through week ending 9 December 2016

Success Drivers

29

Psoriasis Market Share

Expanding OTEZLA® UtilizationExpanding OTEZLA® Utilization

Robust Life Cycle Plan

EventExpected

Timing

Submit sNDAOnce daily formulation

Initiate Ph III TrialScalp Psoriasis

Ph III DataBehçet’s Disease

Ph II DataUlcerative Colitis

2017

2017

2017

2017

2018

Initiate Ph III TrialAnkylosing Spondylitis

Growing Geographic Footprint

France: Secured “No Initial Prescription at Hospital” status, enabling broader utilization

United Kingdom: Positive NICE decisions Psoriasis commercial sales initiated December 2016 PsA sales to begin in January 2017

Japan: OTEZLA® approved on 20 December 2016; represents first oral psoriasis treatment approved in Japan in 25 years; launch expected Q1:17

Italy: Positive decision for PsA , launch began in January 2017; psoriasis decision targeted H2:17

30

Advancing Ozanimod Development Towards ApprovalAdvancing Ozanimod Development Towards Approval

MS Program Updates

Ozanimod potentially best-in-class next-generation S1P modulator

Ph III program for RMS fully enrolled –SPA with FDA

Ph III data expected in H1:17; planning NDA submission YE:17

Primary endpoint – Annualized Relapse Rate (ARR)

Key secondary endpoints include: New/enlarging T2 brain MRI

lesions Number of GdE brain MRI lesions Onset of disability progression

31

Week 104

Randomization 1:1:1

Screening

Ozanimod 1 mg (N=400)

Ozanimod 0.5 mg (N=400)

Avonex (N=400)

Week 1

Week 52

Randomization 1:1:1

Screening

Phase III Trials

Ozanimod 1 mg (N=400)

Ozanimod 0.5 mg (N=400)

Avonex (N=400)

Week 1Variable Tx Duration

Longer-term MS Data Enhances Ozanimod Clinical ProfileLonger-term MS Data Enhances Ozanimod Clinical Profile

Cross-Trial Comparison by Annualized Relapsed Rate (ARR)12-Year Ph II Data

Safety: Most commonly reported AEs were minor

infections and headache

No noteworthy treatment-related occurrences of cardiac, pulmonary, malignancy adverse events or serious opportunistic infections

0.51

0.22 0.18

Placebo (N=88)Ozanimod 1 mg (N=83) PBO controlled period (24 weeks)Ozanimod 1 mg (N=81) Blinded extension (2 years)

Annualized Relapse Rate:*

32

1 Annualized Relapse Rate (ARR) values specific to individual product trials* Unadjusted

Source: Celgene data on file* Unadjusted

0.900.86

0.67

0.60

0.320.26

0.22 0.22 0.22 0.210.18 0.18 0.18 0.17 0.16

2017 I&I Franchise Outlook2017 I&I Franchise Outlook

Maximizing the OTEZLA® Opportunity Continue to accelerate strong growth in the U.S. and early launch markets Advance launch preparations for multiple major European markets and Japan File sNDA for QD formulation Accelerate development of lifecycle management opportunities

Building Capabilities in Neuroscience− Ph III ozanimod results in RMS− Submit ozanimod U.S. NDA in RMS

Moving Key Programs Forward in IBD Advance ozanimod Ph III trial in ulcerative colitis Accelerate enrollment of GED-0301 pivotal trials in CD, enhanced by positive Ph Ib & II trial results Complete GED-0301 Ph II trial in UC

Advancing Development of the I&I Pipeline− Initiate CC-220 into a randomized Ph IIb for SLE− Initiate CC-90001 idiopathic pulmonary fibrosis Ph II trial

33

Jackie FousePresident & Chief Operating Officer


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19

9

TIGIT JTX-2011 CC-90002CC-9000113

CC-95821

2020

Entering a Pivotal Inflection Point with Multiple Value Drivers to Sustain Growth from 2020-2030Entering a Pivotal Inflection Point with Multiple Value Drivers to Sustain Growth from 2020-2030

>$21B Revenue

2020

$13-13.4BRevenue

2017

35

19

9

TIGIT JTX-2011 CC-90002CC-9000113

CC-95821

2020

Entering a Pivotal Inflection Point with Multiple Value Drivers to Sustain Growth from 2020-2030Entering a Pivotal Inflection Point with Multiple Value Drivers to Sustain Growth from 2020-2030

>$21B revenue

2020

$13-13.4Brevenue

2017

Key Catalysts in 2017Hematology and Oncology− Regulatory decision on REVLIMID® in maintenance post- ASCT (H1)− Submit sNDA for RVd in NDMM (H2)− U.S. regulatory decision on enasidenib in IDH2 mutant rrAML (H2)− Ph III data for REVLIMID® in FL (RELEVANCE & AUGMENT®) and ABRAXANE® (apact®) (YE)− POC data for CC-486 in mBC, demcizumab in NSCLC and PanC and durvalumab in RRMM

and 1st Line MDS and AML (Throughout 2017)Inflammation & Immunology− Ozanimod in RMS top-line Ph III data (H1)− Submit sNDA for OTEZLA® once-daily formulation (H2)− Submit NDA for ozanimod in RMS (YE) − POC data for OTEZLA® in UC, GED-0301 in UC and ozanimod in CD (Throughout 2017)

36

Q4 and Full-Year 2016 Conference Call

January 26, 2017


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Reconciliation Tables


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Reconciliation TablesReconciliation Tables

Use of Non-GAAP Financial Measures

In addition to financial information prepared in accordance with U.S. GAAP, this document also contains certain non-GAAP financial measures based on management’s view of performance including:

Adjusted research and development expenseAdjusted selling, general and administrative expenseAdjusted operating marginAdjusted net incomeAdjusted earnings per share

Management uses such measures internally for planning and forecasting purposes and to measure the performance of the Company. We believe these adjusted financial measures provide useful and meaningful information to us and investors because they enhance investors’ understanding of the continuing operating performance of our business and facilitate the comparison of performance between past and future periods. These adjusted financial measures are non-GAAP measures and should be considered in addition to, but not as a substitute for, the information prepared in accordance with U.S. GAAP. When preparing these supplemental non-GAAP financial measures we typically exclude certain GAAP items that management does not consider to be normal, recurring, cash operating expenses but that may not meet the definition of unusual or non-recurring items. Other companies may define these measures in different ways. The following categories of items are excluded from adjusted financial results:

Acquisition and Divestiture-Related Costs: We exclude the impact of certain amounts recorded in connection with business combinations and divestitures from our adjusted financial results that are either non-cash or not normal, recurring operating expenses due to their nature, variability of amounts, and lack of predictability as to occurrence and/or timing. These amounts may include non-cash items such as the amortization of acquired intangible assets, amortization of purchase accounting adjustments to inventories, intangible asset impairment charges and expense or income related to changes in the estimated fair value measurement of contingent consideration. We also exclude transaction and certain other cash costs associated with business acquisitions and divestitures that are not normal recurring operating expenses, including severance costs which are not part of a formal restructuring program.


Share-based Compensation Expense: We exclude share-based compensation from our adjusted financial results because share-based compensation expense, which is non-cash, fluctuates from period to period based on factors that are not within our control, such as our stock price on the dates share-based grants are issued.

Collaboration-related Upfront Expenses: We exclude collaboration-related upfront expenses from our adjusted financial results because we do not consider them to be normal, recurring operating expenses due to their nature, variability of amounts, and lack of predictability as to occurrence and/or timing. Upfront payments to collaboration partners are made at the commencement of a relationship anticipated to continue for a multi-year period and provide us with intellectual property rights, option rights and other rights with respect to particular programs. The variability of amounts and lack of predictability of collaboration-related upfront expenses makes the identification of trends in our ongoing research and development activities more difficult. We believe the presentation of adjusted research and development, which does not include collaboration-related upfront expenses, provides useful and meaningful information about our ongoing research and development activities by enhancing investors’ understanding of our normal, recurring operating research and development expenses and facilitates comparisons between periods and with respect to projected performance. All expenses incurred subsequent to the initiation of the collaboration arrangement, such as research and development cost-sharing expenses/reimbursements and milestone payments up to the point of regulatory approval are considered to be normal, recurring operating expenses and are included in our adjusted financial results.

Research and Development Asset Acquisition Expense: We exclude costs associated with acquiring rights to pre-commercial compounds because we do not consider such costs to be normal, recurring operating expenses due to their nature, variability of amounts, and lack of predictability as to occurrence and/or timing. Research and development asset acquisition expenses includes expenses to acquire rights to pre-commercial compounds from a collaboration partner when there will be no further participation from the collaboration partner or other parties. The variability of amounts and lack of predictability of research and development asset acquisition expenses makes the identification of trends in our ongoing research and development activities more difficult. We believe the presentation of adjusted research and development, which does not include research and development asset acquisition expenses, provides useful and meaningful information about our ongoing research and development activities by enhancing investors’ understanding of our normal, recurring operating research and development expenses and facilitates comparisons between periods and with respect to projected performance.

Restructuring Costs: We exclude costs associated with restructuring initiatives from our adjusted financial results. These costs include amounts associated with facilities to be closed, employee separation costs and costs to move operations from one location to another. We do not frequently undertake restructuring initiatives and therefore do not consider such costs to be normal, recurring operating expenses.


Certain Other Items: We exclude certain other significant items that may occur occasionally and are not normal, recurring, cash operating expenses from our adjusted financial results. Such items are evaluated on an individual basis based on both the quantitative and the qualitative aspect of their nature and generally represent items that, either as a result of their nature or magnitude, we would not anticipate occurring as part of our normal business on a regular basis. While not all-inclusive, examples of certain other significant items excluded from adjusted financial results would be: expenses for significant fair value adjustments to equity investments, significant litigation-related loss contingency accruals and expenses to settle other disputed matters.

Estimated Tax Impact From Above Adjustments: We exclude the net income tax impact of the non-tax adjustments described above from our adjusted financial results. The net income tax impact of the non-tax adjustments includes the impact on both current and deferred income taxes and is based on the taxability of the adjustment under local tax law and the statutory tax rate in the tax jurisdiction where the adjustment was incurred.

Non-Operating Tax Adjustments: We exclude the net income tax impact of certain other significant income tax items, which are not associated with our normal, recurring operations (“Non-Operating Tax Items”), from our adjusted financial results. Non-Operating Tax Items include items which may occur occasionally and are not normal, recurring operating expenses (or benefits), including adjustments related to acquisitions, divestitures, collaborations, certain adjustments to the amount of unrecognized tax benefits related to prior year tax positions, and other similar items.

See the attached Reconciliations of GAAP to Adjusted Net Income for explanations of the amounts excluded and included to arrive at the adjusted measures for the three- and twelve-month periods ended December 31, 2016 and 2015, and for the projected amounts for the twelve-month period ending December 31, 2017.


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Appendix


PURSUITS IN SCIENCE


PURSUITS IN SCIENCE

2017 Milestones2017 Milestones

Financial Performance Total Revenue $13.0B-$13.4B Net REVLIMID® sales $8.0B-$8.3B Net POMALYST® sales ~$1.6B Net OTEZLA® sales $1.5B-$1.7B Net ABRAXANE® sales ~$1.0B Adj. operating margin ~+150bps Adj. Diluted EPS $7.10-$7.25

Clinical Data Ph III apact® – ABRAXANE® in adjuvant PanC Ph III RELEVANCE – REVLIMID® in 1st line FL Ph III AUGMENT® – REVLIMID® in RR FL Ph III Ozanimod in multiple sclerosis (SUNBEAM and RADIANCE) Ph II CC-486 with fulvestrant in ER+ HER2- mBC Ph II Demcizumab in NSCLC (DENALI) Ph II Demcizumab in PanC (YOSEMITE) Ph II OTEZLA® in UC Ph II GED-0301 in UC Ph II STEPSTONE - Ozanimod in CD Ph I/II Durvalumab in RRMM and 1st Line MDS and AML

Trial Enrollment Complete enrollment in Ph III CD-002 – GED-0301 in CD Complete enrollment in Ph III OPTIMISSM® trial

– POMALYST® in 2nd Line MM Complete enrollment in Ph III ROBUST® - REVLIMID® in DLBCL Complete enrollment in Ph III QUAZAR® - CC-486 in AML Complete enrollment in Ph III MEDALISTTM – Luspatercept in MDS Complete enrollment in Ph III BELIEVETM – Luspatercept in beta-thalassemia Complete enrollment in Ph III RELIEF® – OTEZLA® in Behçet’s Complete enrollment in Ph III TRUE NORTH – Ozanimod in UC

Regulatory Submissions/Decisions FDA decision of REVLIMID® in post-ASCT maintenance EU decision of REVLIMID® in post-ASCT maintenance Submit sNDA for RVd in NDMM FDA decision on Enasidenib in IDH2-mutated AML Submit sNDA for OTEZLA® once-daily formulation Submit NDA for Ozanimod in RMS

Trial Initiations Initiate pivotal trial with CC-122 in NHL Initiate pivotal trial with bb2121 in RRMM Initiate pivotal trial with JCAR017 in NHL Initiate Ph III trial with OTEZLA® in scalp PSOR Initiate Ph III trial with OTEZLA® in AS Initiate Ph III trial with RPC4046 in EoE Initiate pivotal trial with Marizomib in GBM Initiate Ph II trial with Luspatercept in myelofibrosis

R&ED File at least 8 IND’s

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Celgene PipelineCelgene Pipeline

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52

REVLIMID® Multiple Myeloma Late Stage ProgramsREVLIMID® Multiple Myeloma Late Stage Programs

Patient Population Maintenance Post-VMP induction

Trial NameMM-026ARUMM

Phase III

Target Enrollment 350

Design

2:1 randomizationInduction with Melphalan/prednisone/bortezomib (VMP)

for 6-9 cyclesArm A: REVLIMID® (10mg) d 1-21

for 28-day cycleArm B: Placebo d 1-21 for 28-day cycle

Primary Endpoint Progression Free Survival

Status Trial enrolling

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REVLIMID® Multiple Myeloma Late Stage ProgramsREVLIMID® Multiple Myeloma Late Stage Programs

Patient Population Induction and Maintenance in ASCT EligibleTrial Name MYELOMA XI

Phase III

Target Enrollment 3,970

Design

Arm A: Cyclophosphamide (500mg) d1,8,15; THALOMID® (100mg d1-21 then 200mg daily), Dexamethasone (40mg) d1-4, 12-15 for minimum of 4 21-day cycle

Arm B: REVLIMID® (25mg) d 1-21, Cyclophosphamde (500mg) d1,8, dexamethasone (40mg) d1-4,12-15 for minimum of 4 28-day cycles

Arm C: Cyclophosphamde (500mg) d1,8, Carfilzomib (20 mg/m2) d 1,2 cycle 1 then (36 mg/m2) d 1,2,8,9,15,16, REVLIMID® (25mg) d1-21, Dexamethasone (40mg) d 1-4,8,9,15,16 for 4 21-day cycles

Patients with no change, progressive disease, PR or MR randomized toArm A: Bortezomib (1.3mg/m2) d 1,4,8,11, Cyclophosphamide (500mg) d 1,8,15, Dexamethasone (20mg) d

1,2,4,5,8,9,11,12 for max of 8 21-day cyclesArm B: No treatmentAll patients go to SCT

After SCT randomization to:Arm A: REVLIMID® (10mg) d 1-21 for 28-day cycle to disease progression

Arm B: No maintenance

Primary Endpoint Overall Survival and Progression Free Survival

Status Interim data presented at ASH 2016

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POMALYST®/IMNOVID® Multiple Myeloma Late Stage ProgramsPOMALYST®/IMNOVID® Multiple Myeloma Late Stage Programs

Patient Population RRMM

Trial NameMM-007

OPTIMISMM®

Phase III


Design

Arm A: POMALYST®/IMNOVID® (4mg), bortezomib (1.3 mg/m2 IV) and low-dose dexamethasone to disease

progressionArm B: Bortezomib (1.3 mg/m2 IV) and low-dose

dexamethasone to disease progression


Status Trial enrolling; Data in 2018E

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MDS/AML/MF Late Stage ProgramsMDS/AML/MF Late Stage Programs

Patient Population Low risk/INT-1 transfusion-dependent MDS Post induction AML Maintenance

MoleculeCC-486

(Oral Azacitidine)CC-486

(oral azacitidine)

Trial Name AZA-MDS-003 CC-486-AML-001

Phase III III

Target Enrollment 386 460

DesignArm A: CC-486 (150mg or 200mg)

Arm B: PlaceboArm A: CC-486 (150mg or 200mg)

Arm B: Best Supportive Care

Primary Endpoint RBC-transfusion independence for more than 12 weeks Overall Survival

Status Trial enrolling Trial enrolling

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Patient Population Anemia in to Very Low-, Low-, or Intermediate-Risk MDS

Red Blood Cell Transfusion Dependent Beta-Thalassemia

Molecule Luspatercept Luspatercept

Trial Name MEDALISTTM BELIEVETM

Phase III III


DesignArm A: Luspatercept (Starting dose of 1.0 mg/kg

subcutaneous injection every 3 weeksArm B: Placebo (Subcutaneous injection every 3

weeks)

Arm A: Luspatercept (1mg/kg plus Best Supportive Care

Arm B: Placebo plus Best Supportive Care

Primary Endpoint Red Blood Cell Transfusion Independence (RBC-TI) ≥ 8 weeks

Proportion of subjects with hematological improvement from Week 13 to Week 24 compared

to 12-week prior to randomizationHematological improvement from Week 13 to Week

24 compared to the 12-week.

Status Trial enrolling Trial enrolling

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Patient Population IDH2 Mutant AML

Molecule Enasidenib (AG-221, CC-90007)

Trial Name IDHENTIFYTM

Phase III


Design Arm A: Enasidenib (100 mg daily , 28-day cycle) + Best supportive care

Arm B: Best supportive care

Primary Endpoint Overall survival

Status Trial enrolling

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REVLIMID® Lymphoma Late Stage ProgramsREVLIMID® Lymphoma Late Stage Programs

Patient Population Relapsed or Refractory Follicular Lymphoma

Newly Diagnosed Follicular Lymphoma

Untreated Activated B-Cell DLBCL

Trial NameAUGMENTTM

NHL-007RELEVANCE®

ROBUST®

DLC-002

Phase III III III

Target Enrollment 350 1,000 560

Design

Arm A: REVLIMID® (10-20mg) D1-21 / Rituximab 375 mg/m2 weekly for cycle 1 then D 1 of cycles 2-5 for 5 28-day

cyclesArm B: Placebo D1-21, / Rituximab 375

mg/m2 weekly for cycle 1 then D 1 of cycles 2-5 for 5 28-day cycles

Arm A: REVLIMID® (starting dose 20mg)

D2-22 for up to 18 28-day cycles and Rituximab (starting dose 375 mg/m2)

weekly for up to 12 28-day cyclesArm B: Physician’s choice of rituximab-

CHOP, rituximab-CVP or rituximab-bendamustine

Arm a: REVLIMID® (15mg) D1-14/+ R-CHOP21 for 6 21-day cycles

Arm B: Placebo + R-CHOP21 for 6 cycles

Primary Endpoint Progression Free Survival Complete Response Rate and Progression Free Survival Progression Free Survival

StatusTrial enrollingData in 2017E

Enrollment completeData in 2017E

Trial enrollingData in 2019E

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REVLIMID® Lymphoma Late Stage ProgramsREVLIMID® Lymphoma Late Stage Programs

Patient Population Relapsed or Refractory Indolent Lymphoma

Trial NameMAGNIFYTM

NHL-008

Phase III


Design

Arm A: REVLIMID® (10-20mg) D1-21 / Rituximab 375 mg/m2 weekly for cycle 1 then D 1 of cycles 3, 5, 7,9 and 11 for 12 28-day cycles followed by REVLIMID® (10mg) D1-21 / Rituximab 375 mg/m2 D

1 of cycles 13, 15, 17,19, 21, 23, 25, 27 and 29 for 18 28-day cycles followed by REVLIMID® (10mg) D 1-21 until disease progression – 28 day cycle

Arm B: REVLIMID® (10-20mg) D1-21 / Rituximab 375 mg/m2 weekly for cycle 1 then D 1 of cycles 3, 5, 7,9 and 11 for 12 28-day cycles followed by REVLIMID® (10mg) D1-21 / Rituximab 375 mg/m2 D

1 of cycles 13, 15, 17,19, 21, 23, 25, 27 and 29 for 18 28-day cycles



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ABRAXANE® Solid Tumor Late Stage ProgramsABRAXANE® Solid Tumor Late Stage Programs

Patient Population Maintenance After Induction in Squamous Non-Small Cell Lung Cancer

Adjuvant Therapy in Surgically Resected Pancreatic Cancer

Trial Name NSCL-003PANC-003

apact®

Phase III III


Design

Induction: ABRAXANE® (100 mg/m2) D 1, 8,and 15 / Carboplatin (6 mg min/mL) D 1 for

4 21-day cyclesMaintenance:

Arm A: ABRAXANE® (100 mg/m2) D 1 and 8 plus BSC until disease progression –

21-day cycleArm B: BSC until disease progression

Arm A: ABRAXANE® (125 mg/m2) / Gemcitabine (1000 mg/m2) D 1, 8 and 15 for 6 28-day cycles

Arm B: Gemcitabine (1000 mg/m2) D 1, 8 and 15 for 6 28-day cycles.

Primary Endpoint Progression Free Survival Disease Free Survival

Status Trial enrollingEnrollment complete

Data in 2017E

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ABRAXANE® Solid Tumor Late Stage ProgramsABRAXANE® Solid Tumor Late Stage Programs

Patient Population First Line Stage IIIB / IV Squamous NSCLC

Trial NameNSCL-003

abound.sqm®

Phase III


Design

Arm A: Induction – ABRAXANE® (100 mg/m2) D 1, 8 and 15 / Carboplatin(6 mg/min/ml) D 1 of a 21-day cycle; Maintenance – ABRAXANE® (100

mg/m) D 1 and 8 of a 21-day cycle or Best supportive careArm B: Induction – ABRAXANE® (100 mg/m2) D 1, 8 and 15 / Carboplatin(6 mg/min/ml) D 1 of a 21-day cycle; Maintenance – Best supportive care



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I&I Late Stage ProgramsI&I Late Stage Programs

Patient Population Active Behçet’s Disease

Molecule OTEZLA®

Trial NameBCT-002RELIEFTM

Phase III


DesignArm A; Placebo for 12 weeks followed by 30mg

OTEZLA® twice daily for 52-weeksArm B: 30mg OTEZLA® twice daily for 64 weeks

Primary Endpoint Area under the curve (AUC) for the number of oral ulcers from baseline through week 12


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Patient Population Active Crohn’s Disease Moderate to Severe Ulcerative Colitis

Molecule GED-0301 Ozanimod

Trial Name CD-002 TRUE NORTH

Phase III III

Target Enrollment 1,064 900

Design

Arm A: GED-301 160mg daily 12 weeks/GED-301 40mg daily 40 weeks

Arm B: GED-301 160mg daily 12 weeks/GED-301 40mg daily 4 weeks on/4 weeks off 40 weeks

Arm C: GED-301 160mg daily 12 weeks/GED-301 160mg daily 4 weeks on/4 weeks off 40 weeks

Arm A: Ozanimod 1mg (daily for induction and maintenance)

Arm B: Placebo (induction and maintenance)

Primary Endpoint Clinical remission defined by Crohn's Disease Activity Index (CDAI)

Clinical remission assessed by Mayo component sub-scores at week 10

Clinical remission assessed by Mayo component sub-scores at week 52

StatusEnrolling

Data in 2018EEnrolling

Data in 2018E

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Patient Population Relapsing Multiple Sclerosis Relapsing Multiple Sclerosis

Molecule Ozanimod Ozanimod

Trial Name SUNBEAM RADIANCE

Phase III II/III


DesignArm A: Ozanimod (0.5mg) daily/placebo IM weeklyArm B: Ozanimod (1mg) daily/placebo IM weekly

Arm C: Oral placebo daily/Beta-interferon IM weekly

Phase IIArm A: Ozanimod (0.5mg) dailyArm B: Ozanimod (1mg) daily

Arm C: Placebo dailyPhase III

Arm A: Ozanimod (0.5mg) daily/placebo IM weeklyArm B: Ozanimod (1mg) daily/placebo IM weekly

Arm C: Oral placebo daily/Beta-interferon IM weekly

Primary Endpoint Annualized relapse rate at month 12 Annualized relapse rate at month 24

StatusEnrollment complete

Data expected in H1:17EEnrollment complete

Data expected in H1:17E

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